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Saudi Arabia to Allocate $200 Billion in Construction Contracts to Pakistan
Saudi Arabia’s Investment Minister Khalid Al-Falih announced on Thursday that the Kingdom plans to direct a significant portion of its $200 billion annual construction and material procurement contracts to Pakistan. Speaking at the Pak-Saudi Business Forum 2024 in Islamabad, Al-Falih expressed optimism about finalizing at least $2 billion in business proposals during his visit.
Saudi Construction Boom Presents Opportunities for Pakistan
With Saudi Arabia poised to become the world’s largest construction market, the Kingdom is investing heavily to diversify its economy. A recent report by Knight Frank projects that Saudi construction output will reach $181.5 billion by 2028, a 30% increase from 2023. As part of this expansion, Al-Falih revealed that Saudi Arabia is expected to award $1.8 trillion in construction and procurement contracts in the coming years.
Al-Falih emphasized that a substantial portion of these inputs will be sourced from Pakistan, presenting a significant opportunity for Pakistani businesses to engage in the Kingdom’s booming construction sector. This announcement comes as Pakistan seeks to strengthen its trade ties amid an ongoing economic crisis, bolstered by Crown Prince Mohammed bin Salman’s commitment to expedite a $5 billion investment package.
Strengthening Bilateral Ties and Investment
During Al-Falih’s visit, Pakistan and Saudi Arabia are set to sign 25 agreements, covering a range of sectors including construction, infrastructure, mining, agriculture, and information technology. The Saudi minister’s delegation of over 130 members from various industries will engage in discussions with Pakistani officials and private companies, signaling a new era of economic cooperation.
This deepened partnership follows the recent approval of a $7 billion bailout for Pakistan by the International Monetary Fund, which has called for continued support from Pakistan’s development and bilateral partners. As Pakistan navigates economic challenges, the collaboration with Saudi Arabia offers a promising pathway for recovery and growth.
